New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-08-13
IVES AND HIS CREDITORS.
SATISFACTION WITH THE ASSIGNEE.

PIE pIsrRIcr-ArroRNEY WILL MAKE AN INvEsTI.
GATIoN-No EFFECT IN WALL STREET.
The failure of Henry S. Ives & Co. had absolutely
40 effect on the stock market Tor the simple reason
that il had been expected tor several weeks Inc
creditor 6rms VIII oh might be affected by the event.
completed the necessary liquidation before the an
nouncement made. The only trans cuou Under
the rule was the purchase 81 500 shares OF New
York Central 1t led to the conclusion that the firm
had so the stock short when MI. Ives secured the
option TOR the purchase of the Baltimore and ONO
Railroad There Is no doubt that he carried In his
rocket Tor sone time an option from President var
ret, and the official announcement that all negola-
lions ended deprived the firm OF one OF i's
ella ms TO respecabiliiy. The only wonder was tna'
President Garrett should stoop So tar as TO sccept
price tor option on his inheritance wh'cn NE nau
exc,l ent reasons for thinking could never DC eAer-
cised The result the usual one wheh any one
touches pitch. The credit OF the Baltimore ana Onio
Railroad was Elected. although not seriously anu tne
tw, ons which Mr.. Garrett received III cash ana
doubtful securities were wholly inadequate return
for his idle dalliance The buying in OF the New
York Central stock naturally suggested the possibility
that the firm might be short OF other stocks, out
nothing in the OF prices supported tue theory
The market was dull although hrm throughout the
day. 50
A meeting Of the ored tors of the firm was held at
the Office of the Cincinnati, Hamilton AM Dayton
Railroad Company in the Schermerhorn Building yes
terday afternoon In addition t. the railroad COM
pauies. which fully represented, William
Fellowes Morgan, Russell Sage and other large
creditors present William Nelson Cromwell,
the assignee who called the meeting, made general
abatement fixing the liabilities at over SloOooooo'
but he confessed that the expert accountants whom
he had engaged had had time to finish their eX-
animation OF the books. Nearly four-hlths oil the
editors in amount were represented. Alfred ouhy'
who has had charge of the COrbln claims as we'll as
his own adv snces, was unayoidibly absent In tDo
ofic al report OF the proceedings 1t was stateo'
TN.
made with SUI stsntal progress looking TO the paying
oil or all the secured Indebtedness OF Henry B. Ives
Co and that syndicate had been formed with his
view also that the Cincinnati, HalnlitOn ~ Dayton
Railroad Company recognizing the complication as
working I'm tue same connection and aiding III every
way the referred to by the use OF its own name ana
credit The Railroad Company did not announce an
agreement that effect but its representatives gave TO
this view their sanction Of the the srep was
unanimously expressed in the following resolution:
lam C SS as assignee of H. 8 Ives Co. and
recommend TO creditors holding securities that they
secHrties and asouabe time be afforded the as
signee 10 take all possible steps % prevent any 80
of such securities thereby advance the interests OF
all concerned"
Assignee Crom we'll said after the meeting that he
could a d nothing TO this stajement lie was satis-
fed ne said with tho position taken BY the creditor
because tnere was maniiesuy general Inclination 10
stand together. .
Algernon s. sullivan, who is counsel to his partner
the assignee said Matters are n mica hetIer
condition than any one III this once imagined We
cannot make detailed statement, OF course, but the
exa.ulpa ION 50 tar il has been made leads us TO
hone tor a speedy settlement. ] think he is are
large, and If they are not sacrlnced they may NC
sufficient" =. -,
In RELY TO an inquiry as to the syndirate which the
assignee q ad stated to he completed, he remarked:
he names of the members cannot be gwen al pres
emit, but the syndicate embraces some OF the best
Lanking houses in the CITY, 9,
Tne Dian whieh the creditors will probably follow is
simne enough. The unsecured creditors including
the railroad compares recently controlled By the
firm will combine to pay the secured loans III the
hope mat the "righteods equities VIII be worth
Wed uesday to prevent tie sale OF bis collateral
securities at public suetioa; IL Is sara tnat ,he
Farmers. Loan aud Trust Company. which hOds
secured loan OF $lOOOUO also withdrew It's coilat'r raj
from the sale Satisfactory promises that the
lpan should be paid in full within short tne ana
August Belmont & Co. yesterday postponed the sale
of securities held by them tor similar reasons The
bank and other loans IN TINS csss are wen seeueu anu
some OF the creditors would be willing to take me
collateral in payment OF then debts The unsecured
creditors advantage IN paying these loans and
obtaining the c.lateral They have formed so
cal ed syndi ate for this purpose:
The assets of tho hrm asiDe from those that nave
been hypothecated are still an unknown qnahtity
The bou, e in BROOKLYN which Mr.. Ives reftted about
wear AGO at great pense reported to stand IN the
name of a sister of his HIS yacht Is fully mortgaged
and his only available assets appear to he his clam
against Robert iarret aud the equity rights IN secur-
ties pledged IN n lew loans
There Is a good ch that the operations OF the
firm may be investigated by the law officers for the
people District Attorney MartLe, who returned
from his vacation yesterday referred TO the -loect IN
this way: Pun not vet prepared TO express any
opuion on this matter. All know about II now Is what
~, seen in the papers 1t claimed by those who have
evidently looked into Tue matter hat Ives merits our
attention lie will get il. We shall investigate the
subject at once" Then he referred 10 the dibculhes
in the way OF the prosecution. " In the ferdlnind
Ward case" he went on, there had been Judicial
investigation in the United States cour.s. We had
this to aid U.s. but ia this Ives business we have to
be lin at the very begianing Oi course, there WIZ
have TO be conn liant made against Ives, but al VIII
not be necessary to have complainant otber IMAM
nysen | can summon Witnesses before the Grand
jury aud have him indicted. But have no facts yet
TO haze any opinion on and until have II wouid not
be lawyer-like for me to say anything further az
present." AZ,
ON. of the incidents OF the failure WAS this. A
Stock Erchsnge broker sent to the Otnce OF Ives d
Co on Thursday morning TO collect about ploo OF
dividends on Cir cinnat, imilton and DAYTON stock
lie messenger was informed that he would have 10
call later in the day. tut quickly returned with
note from the broker that unless the dividend was
paid instantly the default would ne reported TO the
stock Exchange. The payment was male at once,
but the brokers smile some what less broad when
he found he had "a cnec2 on a bank at lerre Haute
IL was learned also that the Chemical Bank STOCK
which has appeared in the hrme loans was chiefly
from thrty-three shares which the firm bought at
auction The stock rarely appears III the market
EXCEPT when 1t ia sold to close estate. The firm
WIS successful BIDDER Tor The thlrty-three shares,
presumsbIy because IL bad good use Tor then' ana
the ock was transferred to its name There was a
common opinion in Wall Street yesterday that the
stock had been jud ciously used - 81.
The First National Bank Cincinnati is a creditor
of the firm TO the amount OF only $toOoo me pIesl-
dent of the bank understood to represent Western
claims amounting to about $4,000 and by some
persons he was supposed TO be acting in an Official
capacity.
on